What is the standard deviation of the returns on a stock given the following information? Could you please show the work? State of Economy Probability of state of Economy Rate of return if state occurs Boom 0.3000 0.1500 Normal  0.6500 0.1200 Recession 0.0500 0.0600 Average 0.3333 0.1100

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Q: E Consider the following information: Probability of Rate of Return if State Occurs Economy…

A: The expected return is the amount of return expected from the investment. Standard deviation is a…

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A: Step 1: ABCDE1Solution:    2     3StateProbabilityReturn AReturn BReturn…

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A: 1) Computation:

Q: Given the following information, what is the standard deviation for this stock? Probability of state…

A: State of nature Probability (P) Rate of Return  ( R) Recession 0.12 0.19 Normal  0.75 0.11…

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Q: Hi can you do the last 2 please Valuation (Overvalued/Undervalued/Fairly Valued)   Nature of stock…

A: 1. If mean is greater CAPM, the stock is undervalued. If mean is less than CAPM, the stock is…

Q: Q3) Consider the following two companies and their forecasted returns for the upcoming year:…

A: Expected return = Probability of each outcome * Return of each outcome Standard deviation = Sum of…

Q: What is the standard deviation of Stock A returns given the information below about its returns…

A: Solution:- Standard deviation means the deviation of a value around its mean. Standard deviation in…

Q: I1 12 1 3 1 4 15 '7 1 8 1 9 1 10 1 11 I 12 1 13 1 14 I · 15 9 1 1. 1. Based on the following…

A: Expected return =p1 r1 +p2 r2+p3 r3 Return are taken in percentage to easily calculate. Expected…

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A: Returns from stock investments depend on market conditions and the market conditions change due to…

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Q: expected to result during each state of nature by its probability of occurrence. Consider the…

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Q: Suppose your expectations regarding the stock price are as follows: State of the Market Boom Normal…

A: The standard deviation quantifies the level of risk associated with a stock, while the mean…

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A: Equation for stock return based on market return is constructed in this format: Y = mx +c Y is stock…

Q: calculate the standard deviation of returns.

A: Standard deviation is the deviation of values and data from an average mean. Standard Deviation is a…

Q: Consider the following information: Rate of Return if State Occurs State of Economy Probability of…

A: Probability recession = p1 = 0.17Probability normal = p2 = 0.62Probability boom = p3 = 0.21Stock A…

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A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: Probability of State of Economy State of Economy Recession .20 Normal .50 Boom .30 Iculate the…

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Q: F G H Monthly Monthly Еxcess Excess return for Market Stock 1 Returns 0.09 0.03 -0.07 0.01 0.02 0.02…

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Q: What is the expected return of Stock A given the information below about its returns across future…

A: Solution:- Expected rate of return means the return expected by an investor from asset by investing…

Q: Expected return

A: Expected Return is the amount of loss or profit an investor expects to receive on an investment. It…

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Q: a 0.07248 b. 0.00386 0.26921

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Q: Given the following information, what is the expected return and standard deviation for this stock?…

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Q: State Dep Rec Prob 0.1 0.3 Return 0.04 0.18

A: The expected return is the weighted probabilistic rate of return that is realized on stock…

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A: The standard deviation is the variability in the returns of the stock.

Q: What is Stock X's geometric returns if it has the following returns? Year 1 8% Year 2 - 5% Year 3…

A: Let the geomatric return be r.=>(1+r)^5= (1+0.08)(1-0.05)(1+0.10)(1-0.06)(1+0.15).

Q: Consider the following information: Rate of Return if State Occurs State of Economy Probability of…

A:

Q: Shepherd's Flock stock is expected to produce the following returns given the various states of the…

A: The computation of the expected return is shown below: Hence, the expected return on this stock is…

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A: Risk and return are essential financial principles. The term “risk” refers to the uncertainty and…

Q: Stock W has the following returns for various states of the economy: State of the Economy…

A: Expected Return and Standard deviation of the Stock is determined using the below formula: Expected…

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A: Coefficient of variation = Standard deviation / Expected return

Q: Compute for the returns, average of returns and Standard Deviation

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Q: You were analyzing a stock and came up with the following probability distribution of the stock…

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Q: Suppose your expectations regarding the stock price are as follows: State of the Market Boom Normal…

A: The mean of the returns refers to the average profits that the investment provides. It is used to…